As part of our ongoing effort to talk about the world of finance, and taking into consideration the present financial situation of many companies and individuals alike all over the world, we are starting a new series that will cover the 12 step process to financial recovery that was developed by the Government Finance Officers Association (GFOA).
The GFOA is a professional association comprised of more than 17,000 state, provincial and local government finance officers in the United States and Canada.
Concerning the process to financial recovery, the GOFA considers it to be a procedure of identifying, stopping and reversing the pattern of a business’s (or company’s) financial decline with the goal of financial recovery. The recovery process is broken into three broad categories: Bridging, Reform and Transformation.
The 12 Step Process to Financial Recovery is as follows:
3. Generic Treatments
4. Initial Diagnosis
5. Fiscal First Aid
6. Detailed Diagnosis
7. Recovery Plan
8. Longer-Term Therapies
9. Long-Term Financial Planning
10. Recovery Leadership
11. Manage Recovery Program
12. Financial Sustainability
In each following blogpost in this series, we will discuss each of the above as well as a cautionary 13th step; the if-all-else-fails step. Below you’ll see a diagram of how they fit together.
As always, please make an informed decision in all matters,